_____ in 2006, Medd City Hospital (MCH) Began Operations and Had

Multiple Choice

_____ In 2006, Medd City Hospital (MCH) began operations and had (under its established rate structure) billings of $8,000,000, of which $7,300,000 was collected by year-end. At year-end, a $200,000 allowance for uncollectible accounts was deemed adequate. MCH performed charity services on many patients who could not afford any payments. Based on normal billing rates, the value of this charity care was $500,000-these patients were not billed. MCH gave discounts (against its billings) of $400,000 to third-party payors. What amount would Medd report in the Expenses section of its 2006 statement of operations?

A) $200,000
B) $400,000
C) $500,000
D) $600,000
E) $900,000